The Seoul city government has suspended the business registration of Hyundai Development Company(HDC) for eight months, following a building collapse during demolition in the southwestern city of Gwangju last June that killed nine people and injured eight others.

The Seoul Metropolitan Government said on Wednesday that the administrative order comes after the builder failed to follow the initial demolition plan and violated on-site management and inspection regulations.

The land ministry earlier requested Seoul city government, the administrative office with jurisdiction, to issue the order.

During the suspension of its registration, HDC will be banned from operation, including participating in project bids. The company can, however, still continue to work on projects under a contract finalized before the suspension.

The city government plans to consider much stricter punishment for the company in regards to a separate accident which saw the collapse of a facade of an apartment complex under construction in Gwangju in January.